MY BIZ: SpiceJet in talks over tie-up with Singapore's Tiger Airways

Kalanithi Maran-run low-cost carrier SpiceJet is in talks with Singapore budget airline Tiger Airways for a possible deal on the lines of the Jet-Etihad tie-up.

According to sources, representatives from both the airlines are doing the rounds of the civil aviation ministry to get a first-hand feel of regulatory hurdles and other impediments that could come their way so that they can avoid the pitfalls of the Jet-Etihad case.

A top civil ministry official said that the representatives informally met civil aviation authorities recently. However, Spice-Jet's spokesperson refused to comment or share any details concerning a possible tie-up.

SpiceJet's debt has more than doubled from Rs 650 crore in the financial year 2011-12 to Rs 1,429 crore in 2012-13

According to sources, a broad understanding has been reached between promoters of both the carriers but they are unlikely to sign a deal soon.

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Kalanithi Maran's SpiceJet is looking for a foreign partner

Industry sources have confirmed that SpiceJet promoters have been seeking investment through a strategic partner.

A civil aviation ministry official said that in case of a tie-up, Tiger Airways and SpiceJet will have to compete with the AirAsia Tata Group joint venture as both Southeast Asian carriers operate broadly in the same market.

"AirAsia too is looking at southern and central Indian market, which both SpiceJet and Tiger Airways are eying. They all want to expand within the Asia Pacific region," the official said.

SpiceJet is looking to partner with a foreign carrier as its debt has more than doubled from Rs 650 crore in the financial year 2011-12 to Rs 1,429 crore in 2012-13.